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GPC. Management Presentation Oil & Gas Investment Symposium February 7-8, 2005 NYSE: GDP. FORWARD LOOKING STATEMENT. - PowerPoint PPT PresentationTRANSCRIPT
GPC
Management PresentationOil & Gas Investment Symposium
February 7-8, 2005NYSE: GDP
Certain statements in this presentation regarding future expectations and plans for future activities may be regarded as “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. They are subject to various risks, such as financial market conditions, operating hazards, drilling risks and the inherent uncertainties in interpreting engineering data relating to underground accumulations of oil and gas, as well as other risks discussed in detail in the Company’s Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct.
FORWARD LOOKING STATEMENT
Market Data as of February 1, 2005
Shares of Common Stock Outstanding – 20.6 MillionMarket Capitalization – $373 MillionInsider Ownership – 60%Public Float – 8 million shares52 Week Price Range - $5.85- $18.35
Investor Contacts
Robert C. Turnham, Jr. D. Hughes Watler, Jr.President Chief Financial [email protected]@goodrichpetroleum.com
Phone: (713)780-9494Fax: (713)780-9254
(NYSE:GDP)
■ Exploration and production company focused in the transition zone of South Louisiana and Cotton Valley trend of East Texas and Northwest Louisiana and the transition zone of South Louisiana
■ Significant upside and development potential from the company’s East Texas and North Louisiana Cotton Valley assets of approximately 45,000 gross acres
■ Multi-year project inventory on South Louisiana transition zone assets
■ Additional exploration upside from two 30 square mile 3-D surveys recently shot in South Louisiana
■ Significant control of activities and capital expenditures. Operator of all properties except one
■ Strong balance sheet with available capital to grow the company
COMPANY PROFILE
■ Grow through the drill bit. Significant reserve and production growth potential on existing assets and Cotton Valley acreage
■ Accelerate development of the Cotton Valley ( 33 wells budgeted for 2005)
■ Pursue strategic acquisitions where we can enhance value through development activities
■ Maintain risk managed approach to grow production and reserves
CORPORATE STRATEGY
DIVERSIFIED DRILLING PORTFOLIO
COMPANY PROFILE – AREAS OF OPERATION
St. Gabriel
Core Properties
2005 Planned Activities
South Henderson
COTTON VALLEY TREND
■ Approximately 45,000 gross acres acquired
■ Panola and Rusk Counties, Texas; Caddo and DeSoto Parishes, Louisiana
■ Natural gas play with low dry hole risk
■ Additional potential in the shallow zones (Travis Peak/Hosston/Pettit Formations)
■ Anticipated 40 acre spacing provides significant development potential and repeatability
■ 14 Wells drilled and completed. Average initial gross production rate of 1,350 Mcf per day.
■ 3 rigs running in the play. (Approximately 30 days between wells.)
■ 33 wells budgeted for 2005.
TYPICAL COTTON VALLEY SECTION
0
100
200
300
400
500
600
700
800
900
1000
1 2 3 4 5 6 7 8 9 10 11 12TIME (MONTHS)
GA
S R
AT
E (
MC
F/D
AY
)COTTON VALLEY - EXPECTED CASE PRODUCTION MODEL (FIRST 12 MONTHS)
0
100
200
300
400
500
600
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20TIME (YEARS)
GA
S R
AT
E (
MC
F/D
AY
)COTTON VALLEY - EXPECTED CASE PRODUCTION MODEL (LIFE OF WELL)
WELL COST $1.5 MM
RESERVES 1.0 BCF
INITIAL RATE1,000
MCF/DAY
IRR AT $5.00/MCF 20% +
AVG. WORKING INTEREST 80%
WELLS PLANNED IN 2005 33
COTTON VALLEY EXPECTED CASE ECONOMICS
COTTON VALLEY TREND – EAST TEXASNEW WELLS - INITIAL PRODUCTION RATES
Prior Heirs #1
TP IP – 1,100
CV IP - 685 Mcf/day
Martin Tuttle #1
IP - 1,800 Mcf/day
Jackson #2
IP - 1,900 Mcf/day
Ashby #1
IP - 1,000 Mcf/day
Swiley #1
IP - 1,450 Mcf/day
BECKVILLE
N. MINDEN
OAK HILL
1.3 Tcf
CARTHAGE
3.1 Tcf
F. Prior #1
IP - 970 Mcf/day
Young Heirs #1
IP - 1,400 Mcf/day
Brooks #1
IP – 1,042 Mcf/day
Dickeson #1
IP – 2,066 Mcf/day
Lake #1
IP – 2,225 Mcf/day
Taliaferro #1
IP – 3,627 Mcf/day
McRae #1
IP – 1,800 Mcf/day
Wyatt #2
IP – 3,500 Mcf/day
Martin Tuttle #2
IP – 1,242 Mcf/day
Morgan #1
Completing
Jackson Wyatt #A-3
Drilling
Craig #1
CompletingHolland #1
Drilling
Pricer #1
Drilling
COTTON VALLEY TREND – NORTHWEST LOUISIANANEW WELLS - INITIAL PRODUCTION RATES
DEADWOOD
BELLE BOWER
47 BCF
HOLLY
111 BCF
BETHANY
CARTHAGE
3.1 TCF
C. Taylor #1
IP - 1,000 Mcf/day
J Holmes #1
IP - 492 Mcf/day
M. Taylor #1
IP – 1,297 Mcf/day
BURRWOOD AND WEST DELTA 83 FIELDS
■ Plaquemines Parish, Louisiana
■ Fields discovered by Chevron in 1955
■ Cumulative production 50 MMBO and 150 BCF from 16 productive sands
■ Acquired the Fields in February 2000
■ 8600 acres of leases
■ Acquired 41 square mile 3-D in October 2001
■ Approximately 55% working interest in current production and 65% leasehold interest in the Fields.
BURRWOOD AND WEST DELTA 83 FIELDS – PROJECT INVENTORY
4,5006,800
11,200 11,100
25,600
35,100
1999 2000 2001 2002 2003 2004
Gross Daily Production (Mcfe)
20 Future Projects
• Net CapEx of approximately $45.8 Million since acquisition.
• Produced approximately 27.5 gross Bcfe since acquisition
BURRWOOD AND WEST DELTA 83 FIELDS – PROJECT INVENTORY
PROSPECT TARGET
NET UNRISKED RESERVE
EXPOSURE
Leonard 9,000', 10,100', 10,500' Sands 6.9 Bcfe
Frazier 7,500' (M), 7,500' (L) Sands 1.8 Bcfe
Sharkey 9,000', 9,100', 10,100', 12.9 Bcfe10,450', 10,500' Sands
Norton II 10,500' Sand PUD
Patterson 10,100', 10,450' Sands PUD
Total 21.6 Bcfe
2005 CAPITAL EXPENDITURE PLANS
LAFITTE FIELD
■ Jefferson Parish, Louisiana
■ Field discovered by Texaco in 1935
■ Cumulative Production – 265 MMBO and 320 BCF from over 30 productive sands
■ Own a 49% working interest in the Field
■ 8200 acres under lease
■ 31 square mile 3-D seismic data over the Field
LAFITTE FIELD – PROJECT INVENTORY
LAFITTE FIELD
Jefferson Parish, Louisiana
7900’ SAND
C.I. = 100’ 23 Future Projects
PROSPECT TARGET
NET UNRISKED RESERVE
EXPOSURE
Sidewinder U. St. Dennis 500 MBO (3.0 Bcfe)U Rigolets
Bahamas 7,900' Sand 200 MBO (1.2 Bcfe)
Unnamed 7,400', 7,800' 920 MBO (5.5 Bcfe)8,300' Sands
Unnamed 6,900' Sand PUD
Total 1,620 MBO (9.7 Bcfe)
2005 CAPITAL EXPENDITURE PLANS
PLUMB BOB FIELD
■ St. Martin Parish, Louisiana
■ Field discovered by Texaco in 1929
■ Cumulative Production – 17.3 MMBO and 23 BCF (126 BCFE)
■ Acquired 70% average working interest in September 2003; 17,000 acres of seismic and lease options
■ Acquired 30 square mile 3-D seismic survey in September 2004
PLUMB BOB FIELDSt. Martin Parish, Louisiana
ST. GABRIEL FIELD
■ Ascension and Iberville Parishes Louisiana
■ Field discovered by Shell Oil Company in 1939
■ Cumulative Production - 83 Bcf and 35 MMBO (293 Bcfe)
■ Own approximately 5,000 Acres of seismic and lease options, with 70% working interest
■ Acquired 30 square mile 3-D seismic survey over the field in November 2004.
■ Initial Development – 2Q 2005
ST. GABRIEL FIELDAscension and Iberville Parishes, Louisiana
CAPITAL EXPENDITURES - 2005
20 MM 18 MM27 MM
24 MM
48 MM
2003 2004 2005 Budget
Cotton Valley
S. Louisiana, Other
$7 MM
$20 MM
$48 MM
Exploration (7%)
Moderate Risk Exploitation (29%)
Low Risk Development (64%)
2005 Budget$75MM
$42MM
$20MM
CAPITAL EXPENDITURES AND RESERVE EXPOSURE -2005 BUDGET
AREA TYPE# OF
PROJECTS
UNRISKED CAPITAL
EXPENDITURES ($MM)
NET UNRISKED RESERVE
EXPOSURE (BCFE)
South Louisiana
Burrwood/West Delta Drill 5 $9.3 21.6
Recomplete 2 $1.0 0.0
Lafitte Drill 4 $3.9 10.4
Recomplete 3 $0.3 0.0
Other Drill 6 $7.0 13.7
Recomplete 2 $0.8 PUD
Seismic 0 $4.7 0.0Total 22 $27.0 45.7
Cotton ValleyEast Texas Drill 29 $44.5 25.9
NW Louisiana Drill 4 $3.5 2.1Total 33 $48.0 28.0
Total 55 $75.0 73.7
-$0.09
$0.17
$0.65-0.75
2002 2003 2004Estimate
FINANCIAL RESULTS
$5.30
$17.00
$28.00-$32.00
2002 2003 2004Estimate
Operating Cash Flow ($ Millions)
Earnings per Share (Basic)
2002 20042003Estimate
UNIT OPERATING RESULTS (Per Mcfe)
1.821.36
1.62
1.37
1.481.28
3.192.84 2.90
2.81
2.18
0.47
2002 2003 2004
Cash Flow Per McfeCash CostLease operating expenses plus production taxesG&A, Interest, Exploration
$3.66
$5.02
$5.71
2002 2003 2004 (9 months)
HEDGE POSITION
$6.77
$6.42
$6.36
$6.54
62%
58% 58% 58%
$6.10
$6.20
$6.30
$6.40
$6.50
$6.60
$6.70
$6.80
1Q05 2Q05 3Q05 4Q05
Weig
hte
d A
vera
ge P
rice (
$ P
er
Mcfe
)
56%
57%
58%
59%
60%
61%
62%
63%
% o
f V
olu
me
s H
ed
ge
d
Percentage of Current Volumes Hedged at Average Price Per Mcfe
WHY INVEST IN GOODRICH PETROLEUM?
■ We are a growth story – Multiple year, balanced drilling inventory
■ Capital expenditure budget increased to $75MM
■ We can control our own destiny with inventory and operations on all but one of our fields
■ Cotton Valley wells are reducing our per unit operating costs
■ Insiders and shareholders’ interests aligned. - Approximately 60% insider ownership
